The National Lotteries Commission (NLC) says it was forced to rely on recruitment agencies to supply it with competent people to serve on the evaluation committee that would conduct the assessment of the controversial multibillion-rand contract to operate the national lottery for the next eight years.
This information was revealed by NLC board chairman, Professor Barney Pityana, to MPs on Tuesday following a Daily Maverick article reporting that Deputy President Paul Mashatile’s sister-in-law formed part of the consortium that bagged the deal as the new operator.
“Previously, the work was outsourced to a competent service provider. But on this occasion, for a variety of reasons, it was very difficult within the time we had to get that external provider in place,” Pityana said.
“We landed with the responsibility to have to set up our systems to make sure that the process of evaluation was not just done by an external provider, which previously it had been done by.
In fact, we had to put together an external provider to make sure that the evaluation committee of experts was appointed independently of the commission itself.”
Concerns about political influence
Some MPs voiced their concerns, questioning whether the evaluation and adjudication process was impartial and free from political influence.
However, MPs were reassured by Trade and Industry Minister Parks Tau and Pityana that every precaution had been taken to ensure the integrity of the process of awarding the eye-watering R180-billion lottery contract.
Though Tau said he would look into the allegations, he cautioned against the criticism levelled against the people involved in the evaluation and adjudication of the bid.
“To expect the team to anticipate that, in fact, in a particular process every individual’s relation will be known is more than is required,” Tau told the MPs.
“Does that mean when matters come to attention we must apply our minds? We do need to do that.
“But I don’t think we can suggest that the indications of the auditors and the role they played were inadequate.”
Pityana said: “As the issues are raised, we have to go back to square one, investigate them, and determine whether they affect the decisions that were made in terms of the law, in terms of the act, as best we can. So far we have not arrived at that position.”
Negative media coverage
The NLC’s Tintswalo Nkuna explained that the organisation had to take the route of requesting headhunting agencies to provide competent people to sit on their evaluation teams after auditing firms — large and small — discontinued to participate due to the reputational risk of the commission at the time.
“When we began sourcing firms to conduct the evaluation process, the NLC faced significant risk due to negative media coverage, ongoing investigations by the SIU [Special Investigating Authority], and other allegations against the organisation,” she said.
“The exposure caused most of the [accounting] firms we approached to refuse to align themselves with the NLC.
“Either the firms declined to participate due to reputational risks, or they lacked the relevant expertise we needed, especially in the gaming sector, which is essential for evaluating game proposals and the lottery system required to operate the national lottery.”
